Chinese e-vapor company RLX Technology Q2 revenue rises on international markets expansion
Overview
RLX Technology Q2 revenue rises 40.3% yr/yr to RMB880 mln (US$122.8 million)
Gross margin improves to 27.5% from 25.2% in prior year
Non-GAAP income from operations up 147.6% yr/yr to RMB116.2 mln
Outlook
Company emphasizes global compliance and strategic partnerships for future growth
RLX Technology focuses on data-driven localized strategies for expansion
Company confident in navigating regulatory shifts and consumer behavior changes
Result Drivers
INTERNATIONAL EXPANSION - Co attributes 40.3% year-over-year revenue growth to sustained momentum in international markets, per CFO Chao Lu
COST CONTROL - Disciplined cost management and optimized product mix led to a 147.6% increase in non-GAAP income from operations, according to CFO Chao Lu
MARGIN IMPROVEMENT - Gross margin rose to 27.5% from 25.2% in the prior year, driven by favorable revenue mix and improved margins in selected Asian countries
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | RMB 880 mln | ||
Q2 Adjusted Net Income | RMB 291.20 mln | ||
Q2 Net Income | RMB 218.50 mln | ||
Q2 Gross Margin | 27.5% | ||
Q2 Gross Profit | RMB 242.10 mln | ||
Q2 Operating Expenses | RMB 203.10 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the tobacco peer group is "buy"
Wall Street's median 12-month price target for RLX Technology Inc is $2.48, about 9.5% above its August 21 closing price of $2.24
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release:
